CT Lean

7/28/2019 CT Lean

1/24

1Q6

Lean

PIC, LLC Implementing & Sustaining Government LEAN Initiatives

Continuous Improvementin Government:Applying LEAN Principles

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2Implementing & Sustaining Government LEAN Initiatives2

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PIC, LLC

Discussion Outlineiscussion Outline Firms Overview LEAN Overview

Approach to Serving Clients Next Steps Discussion

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PIC, LLC

About QPIC & Daniel Pennbout QPIC & Daniel Pennhh 55 Combined Years Consulting Experience55 Combined Years Consulting Experience

hh Government ExperienceGovernment Experience

hh Diverse MultiDiverse Multi--National Fortune 1000 andNational Fortune 1000 andGovernment Client BaseGovernment Client Base

hh Wide range of LEAN Six Sigma and ProcessWide range of LEAN Six Sigma and Process

Improvement Services.Improvement Services.hh Outstanding Rating by our ClientsOutstanding Rating by our Clients

hh USUS--SBA certified SDB, GNEMSDC certified MBE,SBA certified SDB, GNEMSDC certified MBE,

and DAS certified CT Businessesand DAS certified CT Businesses

hh Focused Approach for AddressingFocused Approach for AddressingClientClients Needss Needs

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PIC, LLC

Holistic Leanolistic Lean

LEAN ToolsMWM Measure What Matters

Kaizens

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PIC, LLC

LEAN is based on:EAN is based on:The GoalThe Goal

To deliver continuously improving valueTo deliver continuously improving value--addedaddedservices (quality and speed of service) to customersservices (quality and speed of service) to customers(taxpayers) at lower costs.(taxpayers) at lower costs.

Process ImprovementProcess Improvement To be able to identify key processes, how they areTo be able to identify key processes, how they are

performing and apply LEAN tools to makeperforming and apply LEAN tools to makeimprovements in reducing costs/wastes andimprovements in reducing costs/wastes andenhancing revenues.enhancing revenues.

People are the BusinessPeople are the Business There needs to be a high respect for people. AThere needs to be a high respect for people. A

constant search for how to improve things and reduceconstant search for how to improve things and reduceerrors vs. whos responsible for the error.errors vs. whos responsible for the error.

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PIC, LLC

LEAN CONCEPTSEAN CONCEPTS Build on client skills to get faster resultsBuild on client skills to get faster results

more output from the same peoplemore output from the same people

Focus on continuously improving processesFocus on continuously improving processesboth Internal & Externalboth Internal & External

Increase speed by eliminating waste andIncrease speed by eliminating waste andreducing errorsreducing errors50%+ improvements are50%+ improvements arecommoncommon

Is constraint freeIs constraint free We are targeting the frequency (more) ofWe are targeting the frequency (more) of

doing things, not the persondoing things, not the person

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Q6Lean

PIC, LLC

The Classic Wasteshe Classic Wastes Handling/Unnecessary MotionHandling/Unnecessary Motion

Inferior MethodsInferior Methods

InspectingInspecting Transporting/MovingTransporting/Moving

CountingCounting

Delaying/WaitingDelaying/Waiting

StoringStoring

All Rework LoopsAll Rework Loops

Multiple SignaturesMultiple Signatures

Waste of Underutilized PeopleWaste of Underutilized People

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8Q6

Lean

PIC, LLC

Why is Money Saved?hy is Money Saved? Target best $$ opportunitiesTarget best $$ opportunities

Less transaction times = moreLess transaction times = more

transactionstransactions

Reduced cycle times = faster throughput,Reduced cycle times = faster throughput,

info, decision making, etc.info, decision making, etc.

Less errors = less rework and checking,Less errors = less rework and checking,

accurate informationaccurate information Easier processes = greater employeeEasier processes = greater employee

satisfactionsatisfaction

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9Q6

Lean

PIC, LLC

Just the facts, Mam. Just the facts.Just the facts, Mam. Just the facts.

The Foundation for Improvement is

Built on Facts/Data

Sgt. Joe Friday

In God We Trust

everybody else,

please bring data.

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10Q6

Lean

PIC, LLC

Achievinghieving Changeange EffectivenessfectivenessTo Successfully Implement and Sustain LEANTo Successfully Implement and Sustain LEAN

LEADER

SHIP

THE VISION:THE DESIRED OUTCOME OF CHANGE IS CLEAR, LEGITIMATE, WIDELYUNDERSTOOD AND SHARED. THE 90-SECOND SPEECH.

PROOF OF THE NEED:THE REASON TO CHANGE, WHETHER DRIVEN BY THREAT OROPPORTUNITY, IS INSTILLED WITHIN THE ORGANIZATION AND WIDELYSHARED THROUGH DATA, DEMONSTRATION OR DEMAND. THE NEEDFOR CHANGE MUST EXCEED ITS RESISTANCE.

DEVELOPING COMMITMENT:THERE IS A STRONG COMMITMENT FROM KEY CONSTITUENTS TOINVEST IN THE CHANGE, MAKE IT WORK,AND DEMAND AND RECEIVEMANAGEMENT ATTENTION.

SUSTAINING CHANGE:ONCE CHANGE IS STARTED, IT ENDURES, FLOURISHES AND LEARNINGS

ARE TRANSFERRED THROUGHOUT THE ORGANIZATION . W E MUST BE

ABLE TO SUSTAIN THIS LONG TERM .

MONITORING PROGRESS:PROGRESS IS REAL; BENCHMARKS SET AND REALIZED ; INDICATORSESTABLISHED TO GUARANTEE ACCOUNTABILITY . PROCESS OWNERS ,PERFORMANCE REVIEWS , ETC.

IN

FRASTRU

CTURE

The Elements of ACEHaving a champion who sponsors the change

CHANGING SYSTEMS AND STRUCTURES:Making sure that the management practices are used to

complement and reinforce change

Culture =

the way we

do things

around here

Actions,

Behaviors,

Systems &

Structures drive

Culture

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11Q6

Lean

PIC, LLC

When something is new or a significanthen something is new or a significantchange use ACE Tools:hange use ACE Tools:

If something is new or a change, question #1 is:

Should there be an elevator speech?

- what is the change?- why are we doing it?

- what do you expect from me?

- what's in it for me (WIIFM)?

This provides the unified "talking points" for consistency of message.

Question #2 is:

Who are the stakeholders, where do they stand,and where do we need them to be?

- stakeholder analysis sheet

- strategies to address key stakeholders - communications strategy, etc.

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12Q6

Lean

PIC, LLC

Stakeholder Analysistakeholder AnalysisGetting BuyGetting Buy--In from the Key Stakeholders in the ProcessIn from the Key Stakeholders in the Process

ACEACEAchieving Change EffectivenessAchieving Change Effectiveness

StakeholderStronglyAgainst

-2

ModeratelyAgainst

-1

Neutral

0

ModeratelySupportive

+1

StronglySupportive

+2

Type of

Resistance

Plan to Address

Key: X = Current Support Level

O = Level Stakeholder Needs to be

STAKEHOLDER ANALYSIS

1

2

3

4

5

6

7

8

X O

XO

XO

XO

X

X

X

X

O

O

O

O

Communication throughout process;

educate/train

Involve in solution; educate/train; clarify

roles & responsibilities - accountabilities;

give credit for the change

Involve in solution; educate/train; clarify

roles & responsibilities - accountabilities;

give credit for the change

Involve in solution; give credit for the

change

Involve in any technology solutions

Skepticism;

preconceived

solutions

Skepticism;

change

Skepticism;

change

Skepticism;

change

Potential

resource

impact

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13Q6

Lean

PIC, LLC

CycleTime

CycleTime

SalesSales SigmaSigma

COPQCOPQ

Accuracy

Defects

Accuracy

Defects

Cycle

Time

Cycle

Time


COPQCOPQAccuracy

Defects

Accuracy

Defects

Cycle

Time

Cycle

Time


COPQCOPQ

Accuracy

Defects

Accuracy

Defects

Cycle

Time

Cycle

Time


COPQCOPQAccuracy

Defects

Accuracy

Defects

Measure What Matters (MWM)

Level 0Total Business

Level 1Core Processes

Level 2Sub-processes

Focus on what are the key metrics to support our desired outcomesMWM creates a results based organization

Metrics identify improvement opportunities

Metrics drive higher accountability

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14Q6

Lean

PIC, LLC

Some LEAN Government Metrics:Some LEAN Government Metrics:

Output based:Output based:

BacklogBacklog

Work in ProcessWork in Process

InventoryInventory

Cost Based:Cost Based:

Cost per TransactionCost per Transaction

Total Process CostTotal Process Cost

Labor SavingsLabor Savings

Quality Based:Quality Based:

Customer SatisfactionCustomer SatisfactionRework Steps/TimeRework Steps/Time

First Pass YieldFirst Pass Yield -- Done Right theDone Right the

First TimeFirst Time

% Complete & Accurate% Complete & Accurate

Organization Based:Organization Based:

Employee SatisfactionEmployee SatisfactionTurnoverTurnover

Lean Events ConductedLean Events Conducted

Lean Event ParticipationLean Event Participation

Lean TrainingLean Training

Process Based:Process Based:# of Process Steps# of Process Steps

# of Decisions Required# of Decisions Required

# of Signatures Required# of Signatures Required

# of Delays# of Delays# of Handoffs# of Handoffs

Time Based:Time Based:Lead TimeLead Time --To Accomplish theTo Accomplish the

JobJob

% On Time Delivery% On Time Delivery

Total Processing TimeTotal Processing TimeValue Added TimeValue Added Time

NonNon--Value Added TimeValue Added Time

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15Q6

Lean

PIC, LLC

P-D-C-A LEAN Thinking ProcessLEAN Thinking ProcessSelect the Targeted Process:

Value Stream Mapping

Plan What needs

to be done.

Do TrystormingCheck Reflect on

Results

Act - Adjust

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16Q6

Lean

PIC, LLC

KAIZENAIZENKaiKai ZenZen

To break apartTo break apart ThinkThinkTo modifyTo modify Make goodMake good

To changeTo change Make betterMake better

KaizenKaizen

Change for the betterChange for the better

ImprovementImprovement

Continuous ImprovementContinuous Improvement

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17Q6

Lean

PIC, LLC

Principles for Kaizen Improvementsrinciples for Kaizen Improvements1.1. Think about how the new ideas will work, notThink about how the new ideas will work, not

how they wont work.how they wont work.

2.2. Dont seek perfectionDont seek perfection80% right, 100%80% right, 100%implemented.implemented.

3.3. Fix mistakes the moment they are found.Fix mistakes the moment they are found.

4.4. Make improvements with minimalMake improvements with minimal

investment.investment.

5.5. Continue to ask Why?.Continue to ask Why?.6.6. Dont except excuses.Dont except excuses.

7.7.

Just do itJust do it

make it happen.make it happen.

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PIC, LLC

Why is our approach different?hy is our approach different?1.1. We are driven by data and facts from what theWe are driven by data and facts from what the

process tells us. We like to use visualprocess tells us. We like to use visualtechniques as much as possibletechniques as much as possible

2.2. We integrate Achieving Change EffectivenessWe integrate Achieving Change Effectiveness(ACE) and Business Process Management(ACE) and Business Process Management(BPM(BPMMeasure What Matters)Measure What Matters)

3.3. We get the job done fasterWe get the job done faster4.4. We transfer sustainable skills to the ClientWe transfer sustainable skills to the Client

organization much fasterorganization much faster

5.5. We offer a comprehensive serviceWe offer a comprehensive servicenot justnot justone nicheone niche

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PIC, LLC

Why is our approach different?hy is our approach different?6.6. We have trained groups in LEAN globallyWe have trained groups in LEAN globally

US, Europe, Japan, and ChinaUS, Europe, Japan, and China

7.7. We have handsWe have hands--on developed, implementedon developed, implementedand managed comprehensive LEANand managed comprehensive LEANinitiativesinitiatives

8.8. We have benchmarked best practicesWe have benchmarked best practices

9.9. We integrate LEAN, Six Sigma, andWe integrate LEAN, Six Sigma, andSpecialized Techniques (Bhote), asSpecialized Techniques (Bhote), asappropriateappropriatea unique tool seta unique tool set

10.10. We dont use as many of the traditionalWe dont use as many of the traditionalQuality ToolsQuality Toolsbrainstorming, fishbones,brainstorming, fishbones,NGT, SPC, etc. as often as othersNGT, SPC, etc. as often as others

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2020

Q6Lean

PIC, LLC

Our LEAN Rollout PlanOur LEAN Rollout Plan

1.1.

Preliminary Meeting to review scope of workPreliminary Meeting to review scope of workno chargeno charge

2.2. One day Overview/Launch SessionOne day Overview/Launch Session

3.3. Three day Leadership Team SessionThree day Leadership Team Session1 day for1 day forACE and 2 days for LEANACE and 2 days for LEAN

4.4.

Five day Kaizen Events for each identifiedFive day Kaizen Events for each identified

ProjectProject

5.5. OnOn--going Project Management Supportgoing Project Management Support

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PIC, LLC

Project ResultsProject Results

Collected $750K+ andCollected $750K+ and

streamlined the processstreamlined the processCollect $250K+ in backCollect $250K+ in back

revenuesrevenuesPolice Private JobsPolice Private Jobs

Reduced from 89Reduced from 89-->48>48

daysdaysimpact $600K+impact $600K+ --

eliminated penalties, ableeliminated penalties, able

to have time for moreto have time for more

negotiations, etc.negotiations, etc.

Total process reduce fromTotal process reduce from

8989-->70days>70days

Purchasing RequisitionsPurchasing Requisitions

Reduced by $450K+/QtrReduced by $450K+/QtrReduce by $250K/Qtr.Reduce by $250K/Qtr.Police OvertimePolice Overtime

$4M+ of Grant monies$4M+ of Grant monies

found and able to befound and able to be

usedused

Centralize and manageCentralize and manage

betterbetterGenerate $1M+ inGenerate $1M+ in

useful spenduseful spend

Grants administrationGrants administration

97% within 24 hours of97% within 24 hours of

reportingreporting95% within 2 days of95% within 2 days of

reportingreportingPothole repairsPothole repairs -- DPWDPW

3030--> 1 day, cash in bank> 1 day, cash in bankmaking $250K+/yearmaking $250K+/year

3030-->3 days non lockbox>3 days non lockboxcheckschecks

Tax CollectionTax Collectiontime totime toput cash in the bankput cash in the bank

ResultsResultsImprovement GoalImprovement GoalKaizen or ProjectKaizen or Project

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PIC, LLC

What Do Clients Receive?hat Do Clients Receive?hat Do Clients Receive?Knowledge

Transfer LEAN Six Sigma DNA into the organization

Deliver right tools and techniques to solve business problems

Train with simple, easy to understand intellectual material

Self-sustenance

Build and leave proven deployment strategy in place

Culture of excellence

Shape a data-driven employee baseevery discussion,

meeting, decision

Produce a process-focus mentalityeverythingis a process

Institute a common language

ResultsResultsResults

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PIC, LLC Implementing & Sustaining Government LEAN Initiatives

www.ww.leangovcentereangovcenter.comcom

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Contact Informationontact InformationQPIC (Quality and Productivity Improvement Center), LLCQPIC (Quality and Productivity Improvement Center), LLC

21 Apache Lane21 Apache Lane

Marlborough, CT 06447Marlborough, CT 06447

860860--295295--91349134www.leangovcenter.comwww.leangovcenter.com

[email protected]@comcast.net

Daniel Penn Associates, LLCDaniel Penn Associates, LLC47 Foxridge Road47 Foxridge Road

West Hartford, CT 06107West Hartford, CT 06107

860860--232232--85778577

www.danielpenn.comwww.danielpenn.com

[email protected]@danielpenn.com

CT Lean

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